The following information has been compiled to address frequently asked questions and other essential details pertaining to the educator retirement process with Michigan’s Office of Retirement Services.
All of the provided information has undergone review by ORS for accuracy and reliability, with some details directly provided by ORS.
Additional information may be added as it becomes available.
(Updated 1/28/24)
What is the best avenue for retiring educators to pursue to ensure that they receive an accurate final average compensation (FAC) from ORS?
According to ORS, it can take three months or more to process and review a retirement application. Educators are encouraged to start the process as early as possible to limit the possibility of delays in receiving your first pension payment.
The best way to estimate your retirement is by directly accessing your account via the ORS website.
For specific questions, ORS recommends utilizing the MI Account Message Board when logged into your account via the ORS website, as the average response time is eight hours and it creates a “paper trail” of questions and the answers provided.
If an educator completes the retirement process and receives information that their final average compensation (FAC) was different than anticipated, is there any penalty/consequence for withdrawing their request to retire?
An educator can choose to rescind their retirement up until their retirement effective date by changing their election via the ORS MI Message Board.
How long does it take to process retirement and issue the first pension payment? Are there any potential delays in processing pension payments?
According to ORS, it can take three months or more to process and review a retirement application. Educators are encouraged to start the process as early as possible to limit the possibility of delays in receiving your first pension payment.
ORS states that 94% of retirees are on the payroll and are paid in the month of their retirement effective date.
The majority of retirees are paid on or around the 25th of the month (the standard payday). ORS also has a “daily payroll” process that can produce payments between the 25th and the end of the month.
In some cases, more information is requested before payment is dispersed. Retroactive payments are possible when materials are reviewed and resolved. It is important to send as much information as possible at the time of application to limit processing delays (see below).
Which educators are likely to receive additional scrutiny and potential processing delays?
According to ORS, an educator “who is part of a job classification at a reporting unit of which there are generally fewer than three” are those most likely to require additional review.
If an educator’s pension payment is delayed, who should they contact to have the issue resolved?
For specific questions, ORS recommends utilizing the MI Account Message Board when logged into your account via the ORS website, as the average response time is eight hours and it creates a “paper trail” of questions and the answers provided.
In the instances where pension payments are delayed due to additional review, do those educators also experience a delay in their health care benefits?
A retiring member’s insurance enrollment will not be impacted by an additional review. They will have health care coverage as of their retirement effective date.
What meets the definition of a “salary schedule” for the purposes of ORS’ communication sent on January 7, 2024?
Per ORS, “Clear and specific documentation supporting the increase(s), as well as clear documentation of the approval by the Board of control. That could include information explicitly included in an approved contract, information clearly captured in an adopted Board resolution, or something else entirely that meets the criteria.”
How long does a “salary schedule” need to be in effect for utilization by ORS when determining final average compensation?
The salary schedule or other information must document approval by the Board of Education (or delegated authority, if the Board has done so) prior to receipt of the increase under review.
When calculating the final average compensation, does ORS require that any additional duties be part of a separate contract?
Additional duties should be clearly defined in an educator’s contract, which is approved by their Board of Education. Separate contracts are acceptable, but there is no requirement for separation.
What documentation should an educator prepare when applying for retirement?
Providing as much information as possible up from will help to limit processing delays. Educators should ensure that board meeting minutes are included citing approval for any merit pay, additional duty pay, and any other forms pay received. Also be sure that Board-approved contract(s) outline all additional job duties performed (see above).
It is important to note that additional requests for documentation during an ORS review are often directed to the educator’s business office, not the individual.